The pensioners losing out in National Insurance blunder

Scores have been left penniless after their state pensions were withheld in a massive identity data botch-up.

Dozens of workers with the same name or birthday have been issued with the same National Insurance number.

The result has led to pandemonium, with some of the elderly having their state pensions stopped or cut while others have been interviewed by police and placed under investigation for fraud because of mistaken identity.

The scandal has left some pensioners in poverty, unable to pay food, phone and fuel bills.

Many are women who were apparently issued with new NI numbers after marrying or returning to work after having children.

Tory work and pensions spokesman Chris Grayling said: 'It's looking increasingly as though the National Insurance system's not fit for purpose. Things have to change.' Those born or resident in the UK are usually issued with a NI number shortly before their 16th birthday which helps identify them for tax purposes throughout their life.

But dozens with similar names and dates of birth have been issued with the same NI number.

In the confusion, tax details of some have been wiped out and pension contributions mixed up, leaving many without their due benefits.

Shirley Huggins, 65, was refused a full pension on her retirement and, despite having worked from the age of 14, was put under investigation for benefit fraud.

She and her husband, David, of Peterborough, almost lost their house after they were forced to live off their savings.

She said: 'Although I now receive a partial pension, it still hasn't been sorted out.

'My number was allocated to a Sheila Huggins who had the same birthdate as me but is ten years younger.' Jean Price, 60, who worked her entire life and cares for her disabled husband, Alan, 56, was left without a penny when she came to retire.

She has been told another Jean Price, who lives a few miles away and has the same date of birth, has the same NI number  -  and has also been using it legitimately for years.

But the Department of Work and Pensions will pay out only one pension and Mrs Price has been left without an income.

'I haven't been able to pay the phone bill and we have been living hand to mouth for months,' she said. 'It's like I never existed and I'm not entitled to anything.'

Ann Rankin, who had been paying NI contributions, received a letter saying her pension would be 9p a week.

Mrs Rankin of Southampton said: 'The reason given was that I had the same NI number as another Ann Rankin in Glasgow.

'I feel bitter for the state to just take my contributions for all those years with no return.'

Margaret Evans, 61, a retired medical secretary of Christchurch, Dorset, was mistaken for a woman of the same name.

'My pension forecast was based on the details of the other Margaret Evans. Mine was £40 less,' she said. 'If I had known, I would not have retired when I did.'

HM Revenue and Customs said: 'The small number of confused National Insurance identity cases are usually brought about by one person using another person's NI number in error, rather than a fault within departmental processes.'

The Department for Work and Pensions said: ' We will liaise with HMRC and investigate thoroughly any reports of pensioners having incorrect National Insurance information.'